VIJAYAWADA (Metro Rail News): The Andhra Pradesh government take another critical decision of cancelling the Visakhapatnam metro single bid of M/s Essel Infra Consortium and has decided to appoint a new consultant for the preparation of a revised Detailed Project Report (DPR) for the Visakhapatnam Metro Rail Project through an open tender and issued orders in this regard on Monday.
In government order 332 It was mentation that the order is cancelled due to not much cost reduction was found in the bid received from successful bidder M/s Essel Infra Consortium, the single financial bid also The Managing Director of Amaravati Metro Rail Corporation (AMRC), has been asked to take necessary action.
Innovative PPP model with a revalidated project cost of ₹ 8,300 crores
The government had earlier issued orders approving the development of Visakhapatnam Metro Rail Project under a PPP Model. It also accorded sanction to develop Metro Rail Project with three corridors consisting of 42.55 km under an innovative PPP model with a revalidated project cost of ₹ 8,300 crores.
Allows ECB or foreign funding
The government has also permitted the AMRC to borrow an amount of ₹ 4,200 crores towards the cost of Civil Infrastructure by way of External Commercial Borrowings (ECB), or any other Foreign Funding Agencies/Financial Institutions with lower interest rates comparable to those of Indian Banks with a one time Sovereign Guarantee by the State Government.